Davos 2025: More Optimism Going Forward Due To US Growth, Mahindra Group's Shah Says
India has great fundamentals. India will add as much GDP as European Union by 2030.
There is more optimism than expected. It's coming from the fact that the US economy will likely remain on a strong growth trajectory. It will happen because of many actions President Donald Trump will take, said Anish Shah, chief executive officer and managing director, Mahindra Group.
However, there'll be some issues regarding the tariffs and some level of de-globalisation as well. However, there will be bilateral deals that many countries will look forward to, Shah said in an interview at the Davos World Economic Forum.
Mahindra Group is very optimistic. The automaker sees the US as an important market given its presence in the country for the last 25 years. Mahindra & Mahindra has a very good position in the tractor space in the US. Tech Mahindra Ltd. is also well placed there. The company has less dependence on H-1B visas. Hence, Mahindra Group is ready to go on in the US, Shah said.There is more optimism than expected. It's coming from the fact that the US economy will likely remain on a strong growth trajectory. It will happen because of many actions President Donald Trump will take, said Anish Shah, chief executive officer and managing director, Mahindra Group.
However, there'll be some issues regarding the tariffs and some level of de-globalisation as well. However, there will be bilateral deals that many countries will look forward to, Shah said in an interview at the Davos World Economic Forum.
Mahindra Group is very optimistic. The automaker sees the US as an important market given its presence in the country for the last 25 years. Mahindra & Mahindra has a very good position in the tractor space in the US. Tech Mahindra Ltd. is also well placed there. The company has less dependence on H1B visas. Hence, Mahindra Group is ready to go on in the US, Shah said.
Fundamentals In India Looks Nice
India has great fundamentals. India will add as much GDP as the European Union by 2030. The group sees growth in India as well, Shah said.
Fundamentals are very strong. There will be some blips along the way. The group is seeing some level of weakness in some pockets in India. But the path forward looks very good. In terms of what we hear from people around the world. They are looking at India with a greater degree of importance than what they were before, according to Shah.
Product Pricing
Mahindra Group's aim is to drive profitable growth. Therefore, the pricing is not just go and get sales right now and then worry later. "What you're saying is the strength of a product development. The ability to develop world-class products at prices that are very competitive," Shah said.
The product has to be affordable for the customers whom the company is serving. Therefore, the development of the product needs to happen in that manner. The products that Mahindra & Mahindra develops are based on consumer lifestyle. Therefore, there will be products for premium and less premium to cater to a set of the customers, Shah said.
Similarly, Mahindra & Mahindra is building the electric vehicle portfolio with outstanding products that are priced very well, Shah said.
The Mahindra group always looks at the gross margin as a factor. When the group launched the XUV 700, there were the same set of questions for pricing. People said that it was aggressive pricing. However, it has worked well for Mahindra & Mahindra. It gave the automaker a good margin. Aggressive pricing is not pricing in a way that there will be losses in market share. It's pricing based on product that develop with reasonable margins, Shah said.
